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Planning and Implementing E-Business Projects

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Title: Planning and Implementing E-Business Projects


1
Planning and Implementing E-Business Projects
  • Business Process Renewal
  • Business-Technology Alignment
  • Milestones of an E-Business Project

2
E-Business Projects are Business Process Renewal
Projects
3
What is Business Process Renewal?
Roles Jobs
Policies, Rules, Regulations
The measurable improvement of business
performance through synchronized changes to -
a process - its guiding factors - its enablers
Organization Structure
Business
Business Performance
Computing Communications Technology
Human Resources
Processes
Facilities
4
What is Business Process ?
Its everything we do!!
Is triggered by an external business event.Is
comprised of all the activities necessary to
provide the appropriate business outcomes in
response to the triggering business
events.Transforms inputs of all types into
outputs, according to guidance (policies,
standards, procedures, rules etc.) employing
reusable resources of all types.Contains
activities which usually cross functions and
often organizational units.Has performance
indicators for which measurable objectives can be
set and actual performance evaluated.Delivers a
product or service to an external stakeholder or
another internal process.Usually connects to
other processes.
Its HOW we do what we do!
5
Defining Business Processes
Characteristics
Service
Manufacturing
OwnershipBoundariesControl
PointsMeasurementsCorrective Action
Tends to be ambiguous, has multiple owners and
crosses functional areas. Often unclear due to
cross-functional nature.Often non-existent,
found in areas where TQM is in place.Often
non-existent, hard to find except in areas where
TQM is in place.Unusually reactive,
organizational restructuring or technology a
common solution.
Usually clearly definedClearly
definedClearly established and definedEasy
to define and managePerformed during and after
the process
6
Business Process Breakdown
Provide Take-out/Delivery Service
Core Business Process
WHAT
Serve Customer
Sub-Process (Activity)
Close Transaction
Great Customer
WHAT
Activity (cross-functional)
Take Order
Prepare Order
Schedule Delivery
Deliver Order
HOW
WHO
Server
Server
Chief Staff
Server
Driver
Recipe Get utensils ready Preheat oven Combine
ingredients. Place in cooking dish, place in
oven...
Task/Steps (specifically related to an individual
Workflow
7
Cross-functional business activities
Receive Order
Place Order
Customer
Customer Service
Take Order
Credit
Food Preparation
Prepare food
Schedule Delivery
Logistics
Deliver Order
Delivery
8
Types of Business Processes
CORE business processes are linked directly to
external customers and their values.CORE
business processes meet marketplace demands on a
day to day basis.
CORE business processes guide, control, plan,
enable or provide resources to the CORE and
other SUPPORT business processes.
9
Framework for Process Based Change
Political Commitment Management- Awareness-
Understanding- Willingness Quality/Risk
Management- Risk/Reward- Gating Checkpoints-
Resource Commitment- Opportunity Cost Project
Management- Communication- Perceptions-
Commitments
Nature Continuously Improve
Implement
Redevelop
Renew
Technology Enablers- Infrastructure - IT
Appliances - Communications - Applications Human
Enablers - Skills - Capabilities - Attitudes -
Incentives
Understand
Vision
Architect Align
Business Context
10
Model Flows Between BPR and systems Development
FROM
TO
Business Context
Continuous Improvement
Business Models
Existing Process, Events Data, Organization,
Interaction Models
CPI Models and Procedures
CPI Models
Architecture Align
Vision
Understanding
Renew
Redevelop
Implement
Process Priorities Scooping Models
Process Infrastructure and Application Needs
Process Architecture Models
New Process, Events, Data, Organization,
Interaction Models
Plan IS Strategy
Analyze Application Reqts
Design System
Develop Solution
IS Process Data, Interaction Models
IS Architecture Models (Technology, Data,
Applications)
Design Models
11
Stakeholder/Enterprise Interactions
(Flows)(Business Context)
Staff
Owner
1. 2. Orders 3. Incentives 4. Awareness,
Advertising 5. Complaints, Feedback 6. Supplies
(Food, Non-Food) 7. Time 8. Training 9.
Applications 10. Jobs 11. Trends 12.
Requirements 13. Operating Info. (Financial) 14.
Regulations 15. Approvals, Violation Notices 16.
Applications, Requests
Restaurant Association
Health Safety Inspectors
The Local Restaurant
Supplier
Bank
Customers
Licensing Agencies
Everything which flows must link to at least one
process
12
Process Architecture Diagram
Determine Requirements Provide Resources
Plan Restaurant Operations
Guiding Process
People Lounge Service Provide Banquet Service Pr
ovide Catering Service Provide Restaurant Dining
Service Provide Delivery Service
Core Process
Provide Marketing Services
Prepare Food
Provide Customer Service
Enabling Process
Maintain Operate Facilities
Provide Information Services
Provide Financial Services
Provide Consumables and Supplies
Assign Human Resources
Provide Legal Regulatory Services
13
Understand Process Interfaces
Plan Restaurant Operations
Prepare Food
Plan Restaurant Operations
Provide Marketing Service
Provide Customer Service
Maintain Operate Facilities
Provide Delivery Service

Assign Human Resources
Provide Financial Services
Provide Consumables and Supplies
Staff
Customer
14
Why Process is SO important?
Business Differentiation - Competitive
Advantage - The question is not whether to
change, but how to change
Technology - Directly supports processes -
Naturally cross functional and organizational
boundaries
Financial Pressures - Reduced Costs - Increased
Output - Consistent Quality
15
Formulate Process and Project Vision
Vision Provide Customers with a quality
product delivered in 30 minutes of less.
STEP Identify Project Performance
ImprovementTargets
Customer Satisfaction Eliminate non-value-added
activities Reduce of exceptions Improve the
reliability of delivery Increase customer
satisfaction Food Delivery within 30 minutes or
less of order Satisfied Customers Delivery
service vehicles are unreliable Delivery by taxi
is not within our complete control
KPIs Objectives CSFs Constraints
16
Define the Process Boundaries
Where does the Process begin and end? Clarify
Perceptions Comparability - before after
apple-to-apples
Phone Rings
Payment Accepted
Order Approved
Order Taken
Order Delivered
Order Ready
Delivery Scheduled
of minutes
17
Process Components What else do we need to know?
IGOE Input, Guide, Output, Enabler
Something that is utilized consumed by or
transformed by an activity (process) Connects to
left side of boxsomething that determines how
or when an activity occurs but is not consumed
Connects to top of boxsomething that is
produced by or results from an activity/process
Flows from right side of boxsomething
(person, facility, system, tools, equipment,
asset or other resources) utilized to perform the
activity Connects to bottom of boxNote
Enablers are NOT consumed.
Input Guide Output Enabler
An IGOE might be a physical object, rule, goal,
principle or piece of data, a machine, a
computer system or anything that is relevant to
the process. Note These concepts are based on
upon the principles and rules of IDEFO, which
refers to IGEOs as Inputs, Controls, Outputs, and
Mechanisms - ICOMs) ICOMIGOE
18
Identify Inputs and Outputs
Inputs Transformed into Outputs
Physical transformation
Prepare Food
Ingredients
Locational transformation
Restaurant
Home
Informational transformation
Order Details
Verbal Info
19
Identify IGOEs via Enablers
Inquiries, Reference, Guidance, Knowledge
Results
Information to be changed
Why am I here?
20
Process Components (IGOEs)
Policies, Standards, Regulations, Laws,
Knowledge, Triggering Events
Guides
Results Information Deliverables Products
Process Step
Information Materials
Inputs
Outputs
Sub-Process Step
Human Resources, Tools, Equipment, Systems,
Facilities
21
Identify High Level IGOEs
Credit policy
Food OrderDelivered
Special Order
Customer Calls
Customer History
Order out menu
Customer complaint
Rejected customer Request
Customer Information
Order Details
Provide DeliveryService
Discount coupons
Discount Coupons
Returned Order
Packaged Order
Packaged Order
Order payment
Order Status
Delivery vehicles
Restaurant Staff
Order System
22
Project Team Structure
Team Responsibilities Core Team Assumes an
internally managed project
Project Champion
Project Champion - Ensures the delivery and
acceptance of the project results may be the
process owner. - Clears the path and warns of
road blocks - Resolves political and cross
organizational escalate - Takes responsibility
for the ongoing operation of the Project
Acceptor - Coordinates the multiple vested
interests of the - Acts as project conscience -
Accepts the project results on behalf of the
process champion - Can also be the Project
Champion Project Manager - Plans and manages the
project day to day - Motivates and manages the
team - Focal point for project issues - Delivers
the business solution to the Acceptor Project
Team Member - Dedicated to conduct the day to day
activities of the BPR process - Understands the
business requirements and delivers to the
Acceptor - Brings either BPM technique or SME
knowledge or skills - Coordinates an extended
team relationship
Project Acceptor
Project Manager
Core Team Members
23
Understanding Processes
Gather Process Information Decompose Scoped
Process into 3 - 7 Sub-Processes
(Activities) Develop Modeling Standards Model
the Process Determine Process Roles and
Responsibilities
?
?
?
?
?
24
How do we describe our process/activities?
A process is represented by a labeled box The
label must be an action/object phrase that
describes the activity in a concise, specific
manner
? Take Order ? Fill Out Forms ? Call
Customer ? Determine Delivery Route ? Install
Equipment
PROCESS Action Object
X Process Documents X Maintenance X Manage
Warranty
25
What is Process Modeling?
A diagram or map of a business process and the
supporting documentation of related
characteristics, which identifies the activities
performed and the information and product flows
between them.
What it is not !
What it is !
Science
ONE WAY
26
Current Process Modeling
Establishing the DOT
You are HERE
27
When Do I Stop Modeling Current Process?
What I know?
What I Model?
STOP
Recognize there is a difference between what I
understand (know) about the process and what I
model
28
Modeling Current Process at Various Levels
CORE PROCESS
ProvideDeliveryService
WHAT
Service Customer
Close Transaction
Greet Customer
WHAT
Prepare Food
Schedule Delivery
Deliver Order
Take Order
HOW
20
HOW
100
Workflow
29
Understand Business Processes
What I Model
What I Model
What I Model
- Measure the business performance - Evaluate
alternative organizational structure - Explore
Technology opportunities
- Remove gaps - Manage cross-functional
interfaces - Allocate resources appropriately
- Determine root cause - Recommend change -
Validate understanding - Confirm the boundaries -
Identify gaps
30
Communicate Understanding
Event triggers
Guides
Schedule Delivery
Inputs
Prepare Food
Take Order
Customer Satisfaction
Deliver Food
Enablers
Output
Enablers
Inputs
31
Measuring Processes
? Review Process and Project measures?
Develop/Clarify measurement criteria ?
Identify appropriate measures ? Gather
measurement information ? Annotate the models
and characteristics
32
Identify Appropriate Measures
? Process and Project goals and objectives will
determine required level of Measurement?
Can be a mix of process model levels
Measurement Granularity (Number of Measured Sub
Processes)
Significance of Process Change
? Should at lease measure overall process
performance? Details are required for
incremental change, 80/20 tells where to drill
33
Identify Appropriate Measurement Levels
ProvideDeliveryService
Service Customer
Close Transaction
Days
Greet Customer
WHAT
Minutes/Hours
Prepare Food
Schedule Delivery
Deliver Order
Take Order
HOW
gt100
Minutes
HOW
15-50
Minutes/Seconds
Workflow
10-15
34
Review KPIs and Project Objectives
Key Performance Indicator ? Customer
Satisfaction
Project Objectives? Eliminate non-value-added
activities? Reduce number of coupons given by
50? Simplify the process? Improve
cross-functional communication? Reduce of
exceptions? Improve the reliability of
delivery-? Improve on-time from 50 to 90?
Increase customer satisfaction-reduce the
number of complaints by 50
35
Develop/Clarify Measurement Criteria
? Timeliness - understand your business cycles
? should recognized and represent variations
in operations ? Validity - must be a valid
measure of process performance ? orders
filled and orders processed vs. pulls per hour
? Completeness - right level of measures for
project objectives ? who needs
information and how much do they need ?
Inclusiveness - all appropriate costs not just a
few ? should include all related costs,
including such things as overhead, space,
supplies, etc. ? Cost Effectiveness - measuring
is not FREE ? value of measurement vs.
the cost of obtaining ? Comparability - before
and after ? apples - to - apples ?
Balanced - include measurements from all three
categories ? Perspective - various
stakeholders ? internal ?
external
36
Aspects of Measurement
Only Measure Performance Improvement Targets
Quality and EffectivenessMeasures ?
Appropriateness ? Customer Satisfaction ?
Quality ? Defects ? Cost of Non Conformance ?
Price ? Responsiveness ? Consistency ?
Profitability ? Market Share ? Real Value-added
to ? process cost
Efficiency Measures ? Cost ? Cycle time ?
Wait time ? Wastage ? Scrap ? Spoilage
Adaptability Measures ? Product and service
variability ? Job satisfaction ? Ability to
handle non standard customer requirements ?
Time to profit ? Time to market ? More capable
work force ? More flexible staff ? Equipment
Capability ? Business Disruption ? Morale
Common denominators are often Time, Cost, and
Customer SatisfactionProcess measures must be
directly related to business performance measures
37
Validating and Analyzing Processes
? Run Workshops ? Observe the Process
Flow ? Decompose and Prioritize Process
Flows ? Identify Evaluation Criteria for
Quick Wins ? Implement Quick Wins
38
Process Analysis Techniques
? Process mapping interviews and
facilitated workshops ? Customer Focus
Groups ? Supplier Feedback ? Observing the
full process
? Value-Added Analysis ? Gap Analysis ?
Root Cause Analysis ? Comparisons to
Documented Procedures
39
Examine IT Enablers
Provide Information for Decision Making
andCustomer Service? Multimedia Knowledge
Access ? Natural Language Information
Retrieval ? Data Warehouse ? Geographic IS
? Expert Systems ? Electronic Books
Capture Information/ Recognize Triggers ?
GUI ? Smart Cards ? PDAs ? Self-Identifying
Tags ? Image Capture ? Bar Coding ? OCR ?
Speech Recognition ? Phone/Fax ? Biometrics ?
Wearable Computers
Pass Control/Hand-off? EDI/edi ? IVR ?
Workflow Applications ? Workgroup Applications
? Documents/Forms/Images ? Internet/Intranet/Extr
anet ? xDSL (Generic Digital) Subscriber Line ?
Cable Modems ? IP Telephony ? Internet Chat
40
Build Evaluation Criteria
? Refer to project goals and objectives?
Start with process KPIs, vision, and
objectives? Convert into criteria that can be
used to evaluate the ideas? Assign a weight to
each criteria
Increase Customer Service
35Increase Profits
55Improve Employee Morale
25Improve On-time Delivery
45
41
Technology / Process Matrix
Ranked Process
Process 1 Score
Process 2
---
----
Ranking
Technology
Technology
Score Ease of Deployment and Technology
Potential Prepare 2 matrices one for ease of
deployment and other for technology potential
42
Technology Migration Strategy






Ease of Deployment Rank
Technology Potential Rank
43
E-Business Project Milestones
  • Identify processes ? Identify enablers?
    Prepare business-technology matrix? Identify IT
    project tasks? Prepare action plan?
    Search/develop solutions? Implement/deploy?
    Improve continuously

44
Overcoming Resistance to Change
Set goals, measure, provide coaching and
feedback, reward and recognize
NotWilling
Educate and train in new skills
Not Able
Communicate thewhat, why, how, when, who,...
Not Aware
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